How Momofuku used Intelligems to find a Black Friday offer that boosted profits by 28%

Background

Momofuku Goods is a line of restaurant-grade pantry essentials founded by David Chang, Marguerite Mariscal, and the team behind Momofuku. Products include its Chili Crunches, air-dried noodles, sauces and Seasoned Salts, all of which can be found in more than 2,000 doors nationwide, as well as retailers online.

Momofuku runs seasonal promotions and wanted to test various offers ahead of Black Friday, a major sales period for the brand.

Challenge

Finding the right offer to maximize performance on Black Friday was near impossible

Historically, Momofuku Goods had tried various holiday offers to boost AOV. Choosing the optimal offer had been difficult, however, because comparing offers run over different time periods was unreliable. Did one offer outperform another because it really resonated better with customers or was the difference attributable to something else like a recent review or ad? The team knew that only a true A/B test could answer this question and looked for a solution that could split traffic in real-time to ensure reliable results.

The integration had to be low-code with no major dev work and had to work seamlessly with their existing store theme. To give each offer a chance to succeed, the offers had to be showcased visibly on-site, including in the banner and through a progress bar in the cart.

Because this was only a testing ground for the Black Friday offer, the test had to be limited to only a small segment of VIP customers and direct site traffic could not see the offers being tested.

Key Goals

• A/B test different gift-with-purchase and other AOV-boosting offers

• Expose only a subsegment of traffic to the test through a targeted email campaign

• Showcase discounts on-site to boost offer effectiveness

• Launch the test quickly and without significant dev work

Solution

Intelligems Personalizations allowed Momofuku to split test different offers ahead of the big event

With Intelligems Personalizations and offer testing, the Company was able to quickly set up an offer test that customers could only access through a customized link. When users came to the site through this link, they would randomly be placed in a test group and get one of the offers Momofuku Goods was testing.

Here are the steps they followed:

1. Create the offer Personalizations and test in Intelligems

Flexibility in creating offers, including ability to add a free shipping message, a gift with purchase, and give a discount when cart thresholds are reached.

2. Add Intelligems Personalization links to emails

Within Klaviyo, the team was able to easily add the Intelligems-generated links that unlocked the test for recipients of the promotion email.

3. Design the on-site experience

The Company leveraged Intelligems’ out-of-the-box tools to advertise the discount only to customers that came to the site through the link in the targeted email. These customers saw a banner and an in-cart progress bar that showcased the offer.

4. Shopify Functions will automatically apply the discount

After the Personalization is created, Intelligems will use a discount function for non-Shopify customers to ensure that visitors get the correct discount at checkout! This happens automatically without any manual work.

5. Launch the test

After launching the test in the Intelligems dashboard and sending the emails to the target email list, the test was live. The Company utilized Intelligems’s A/B testing tools to compare the performance of the offers. 

Results

The winning offer boosted conversion and profits, generating 28% more profit than the next best offer

The Momofuku Goods team was able to track this performance real-time in the Intelligems Analytics Dashboard. Intelligems’ analytics made it easy to compare profit generated by each test group and discover that the winning offer outperformed the next-best by 28%!